Natural Gas Geopolitics
Luis Rutledge
Pesquisador da UFRJ/Membro do Conselho Consultivo do Observatório do Mundo Islamico/Membro do CERES - Centro de Estudos das Rela??es Internacionais Consultor da Funda??o Centro de Estudos do Comércio Exterior
In order to reduce Russian dependency, the European Union started importing gas from Azerbaijan. Coming from the gigantic Shah Deniz field, located in the Caspian Sea, the gas will be transferred to Turkey and distributed to the member countries through the Southern Gas Corridor that makes up a complex of three 3,500 km long pipelines. The capacity of this complex to transport 10 billion cubic meters per year to Europe allows this way to diversify the energy supply shipments and to reduce the interference of geopolitical factors in the European supply.
A worrying factor for both US LNG exports and Russian gas pipelines at a time when demand is still low, heavily influenced by the pandemic, and stocks are on the rise. To further enhance the European gas market, we can include major Australian LNG production and export records.
We will see in the coming months how market and demand will behave in this scenario.
Source: offshore-mag.com